Demand Response (DR) is an established methodology for managing peak electrical demand by providing incentives to customers to reduce load on demand. An example of DR is a set of actions taken to reduce load when electric grid contingencies threaten supply-demand balance or market conditions occur that raise electricity costs.
DR plays a vital role in energy grid stabilization (for example during hot summers), easing severely-constrained electrical grids. Future energy crises caused by electricity demand exceeding system capacity may be postponed or even averted through DR. Automated Demand Response (ADR) is a systematic technology and communications platform that helps system operators reduce the operating costs of DR programs while improving DR resource reliability and consistency.
Open Automated Demand Response (OpenADR) is an open and standardized methodology for energy providers and system operators to communicate and convey energy market signals and DR signals with each other, and with their customers, using a common language. A typical use of OpenADR includes transmitting information and signals that cause electrical power-using devices to be turned off during periods of high demand. OpenADR information may be transmitted from electricity providers and system operators to the customers via Transmission Control Protocol (TCP) and Internet Protocol (IP), commonly known as TCP/IP. TCP/IP is a set of communications protocols used for the Internet and similar networks. OpenADR information may be transmitted and received over an existing IP-based communications network, such as the Internet. OpenADR version 2.0 (OpenADR 2.0) is a standard version of OpenADR that enables scaled deployments and interoperability within Smart Grid technologies, thus reducing the cost of DR technology enablement and customer adoption.
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